Purchase prices for barley and wheat in the river ports of Ukraine continue to fall
After blocking the Black Sea ports, Ukraine continues to export grain and oil crops through the Danube ports of Reni and Izmail, as well as by rail and road through its western borders.
The increase in the price of grain delivery from Ukraine to the ports of Romania and Bulgaria, which already exceeds half the cost of grain, increases the losses of agricultural producers in the current season. If some of the producers have reserves of funds and can store products for a long time, if necessary selling them in small batches, then most farmers in the southern regions are forced to sell grain from the field, which increases the pressure on prices.
Falling world prices for grain and oilseeds further increase pressure on prices. Thus, in the ports of Reni and Izmail, demand prices for new harvest barley for delivery in July-August fell to $135-170/t or UAH 4,000-5,000/t.
Traders have hardly bought wheat in the past 4 months, but the cancellation of export licenses may boost purchases. World wheat prices are falling under the pressure of low demand from importers. Thus, demand prices for wheat delivered to Baltic ports and Romania decreased to $330-340/t.
In Ukraine, the purchase prices for wheat remain at a low level of UAH 5,300-6,000/t or $180-200/t SRT-port. International traders do not risk buying new crop wheat without export guarantees to avoid possible losses. A year ago, the purchase prices for wheat in the ports of Ukraine reached $215-222/t or UAH 6,500-6,800/t, but this year, in the conditions of a difficult global balance, blocked exports and a reduction in wheat production in Ukraine, world prices will remain at the level of $350-370/ t FOB – Black Sea ports (compared to last year’s $230-240/t FOB).
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